China’s YMTC Plans Entry into DRAM Market to Bolster AI Supply Chain

On September 25, 2025, Reuters reported that YMTC, China’s top flash memory producer, is planning to expand into the DRAM market. Sources said the company is building expertise to manufacture both commodity DRAM and high-bandwidth memory (HBM), which is critical for powering AI training and inference workloads.

This shift aligns with China’s broader strategy to secure self-sufficiency in semiconductors amid escalating trade and export restrictions. Currently, global DRAM supply is dominated by Samsung Electronics, SK Hynix, and Micron Technology. A move by YMTC could intensify competition and potentially disrupt existing market dynamics.

Industry experts suggest YMTC may initially face hurdles in scaling advanced DRAM yields, but government support, subsidies, and partnerships with Chinese cloud providers could accelerate progress.

Key Highlights

• YMTC to enter DRAM market, expanding beyond NAND flash memory.

• Plans include high-bandwidth memory (HBM) — vital for AI systems.

• Move supports China’s tech self-sufficiency goals under trade restrictions.

• Global DRAM leaders currently: Samsung, SK Hynix, Micron.

• Could reshape semiconductor competition in both AI and consumer electronics.

Why This Matters

1. AI Compute Dependency: HBM is a cornerstone of AI infrastructure—localizing its production gives China resilience against export curbs.

2. Geopolitical Implications: Strengthens Beijing’s semiconductor independence, reshaping global supply chain power balances.

3. Market Disruption Potential: Entry from YMTC could challenge Korea’s and the U.S.’s current dominance in the DRAM sector.

4. Long-Term Investment Signal: Demonstrates China’s sustained commitment to developing every layer of its semiconductor stack.

Source
Reuters – Full Article